Teva Pharmaceuticals USA has been charged with conspiracy to fix prices, rig bids, and allocate customers for generic drugs by the U.S. Department of Justice (DOJ).

Teva is the seventh pharmaceutical company to be indicted as a result of an ongoing federal antitrust investigation into price-fixing, bid-rigging, and other anti-competitive practices in the generic pharmaceutical industry.

According to the DOJ, a superseding indictment was filed against the American Israeli pharmaceutical company for U.S. District Court for the Eastern District of Pennsylvania on Tuesday.

Teva is facing three counts of conspiracy charges

The superseding indictment alleged that Teva participated in three conspiracies involving Apotex Corp, Glenmark Pharmaceuticals, Taro Pharmaceuticals, and others from at least May 2013 to around December 2015.

Teva is facing one count of conspiracy, which involved Glenmark, Apotex, and other unidentified co-conspirators, for agreeing to increase the prices of Pravastatin and other generic medicines. Pravastatin is a commonly prescribed cholesterol medication to lower a patient’s risk of heart disease and stroke.

A second count charges Teva for its role in a conspiracy with Taro Pharmaceuticals, its former executive Ara Aprahamian, and others. These co-conspirators allegedly agreed to increase prices, rig bids, and allocate customers for generic drugs used to treat and manage arthritis, seizures, pain, skin conditions, and blood clots.

A third count accuses Teva of conspiring with Sandoz and others to raise prices, rig bids and allocate customers for generic drugs used to treat brain cancer, cystic fibrosis, arthritis, and hypertension.’

“No company is too big to be prosecuted”

In a statement, DOJ Antitrust Division Assistant Attorney General Makan Delrahim said, “Today’s charge reaffirms that no company is too big to be prosecuted for its role in conspiracies that led to substantially higher prices for generic drugs relied on by millions of Americans. The division will continue to work closely with our law enforcement partners to ensure that companies that blatantly cheat consumers of the benefits of free markets are prosecuted to the full extent of the law.”

On the other hand, FBI Washington Field Office Acting Assistant Director in Charge James Dawson commented, “Today’s charges, the latest in a series of law enforcement actions taken against large drug companies, confirm that this kind of criminal behavior in the generic pharmaceutical industry will not be tolerated.”

“Price fixing and bid rigging is a crime, and the American people—who rely on these drugs to treat serious ailments—are the ones who pay the price when companies like Teva conspire to raise their costs.  The FBI remains committed to holding companies accountable for their illegal and reprehensible activity,” added Dawson.

Teva “firmly rejects” the DOJ’s allegations

In response to the charges, Teva Pharmaceutical Industries Ltd. (NYSE: and TASE: TEVA) expressed its disappointment with the federal government’s decision to prosecute the matter.

According to the American Israeli pharmaceutical company, it has been conducting its own investigation into the allegations for more than four years and concluded that it was not involved in price-fixing.

Teva “firmly rejects the allegations and will vigorously defend the Company in court.”

Last week, U.S. Attorney for the District of Massachusetts Andrew Lelling filed a civil complaint against Teva Pharmaceuticals USA and Teva Neuroscience (collectively Teva) for allegedly violating the False Claims Act.

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